What is the primary purpose of a Henson trust?

A Henson trust is specifically designed to provide for beneficiaries with disabilities while protecting their eligibility for means-tested government benefits. The primary purpose of this type of trust is to hold and manage assets for individuals with disabilities, allowing them to benefit from trust assets without negatively impacting their qualification for essential support programs, such as social assistance or disability benefits.

By establishing a Henson trust, the trustee can use the funds to enhance the beneficiary's quality of life—such as covering additional living expenses, medical costs, or recreational activities—without the beneficiary's assets exceeding the threshold set by governmental agencies, which could jeopardize their benefits.

In contrast, other options focus on different objectives, such as managing real estate, which does not encapsulate the specific focus on beneficiaries with disabilities, consolidating debts, which pertains to financial management rather than care for disabled individuals, and administering estates, which involves handling a deceased person's estate rather than supporting living individuals with disabilities. Each of these choices addresses distinct needs that do not align with the foundational intention of a Henson trust.